2006-2007 Pesticide Market Estimates: Introduction

Under the Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA) and the Federal Food, Drug, and Cosmetic Act (FFDCA), the U.S. Environmental Protection Agency (EPA), in cooperation with states and other agencies, such as the Food and Drug Administration (FDA) and the U.S. Department of Agriculture (USDA), is responsible for regulating the production and use of pesticides in the United States. This report provides contemporary and historical economic information on the U.S. pesticide producing and using sectors covered by these state and federal regulatory programs. Economic profile information covers a variety of topics, particularly the pesticide market with respect to dollar values and quantities of active ingredient. The EPA Pesticide Program has issued such market reports since 1979.

This report is intended only to present objective economic profile and trend information reflecting the best information available to EPA on pesticide sales and use. It does not attempt to interpret, reach conclusions about, or make inferences about the data. Detailed analysis of causal factors or implications, such as potential impacts on human health, the environment, or the economy, falls beyond the scope of this project.

We caution the reader not to infer too much from changes in the amount of pesticides used from year to year. Changes in the amount of pesticides used are not necessarily correlated with changes in the level of pest control or changes in the human health and environmental risks associated with pesticide use.

Data Sources

Neither EPA nor any other federal agency has a program devoted specifically to estimating the overall pesticide market in terms of dollars spent and quantity of active ingredient used on an annual basis. This report uses the best available information from the public domain and private marketing research companies (proprietary data sources). The numbers in the report represent approximate values rather than precise values with known statistical properties.

The Agency has a wide variety of public and proprietary information upon which to base estimates of pesticide sales and use. The Biological and Economic Analysis Division (BEAD) of EPA's Office of Pesticide Programs (OPP) maintains extensive files and library materials. These materials cover different pesticide types and groupings in the agricultural and non-agricultural market sectors. In compiling the report, the Agency used several database services, including one from the USDA and others from private pesticide marketing research companies. The private marketing research data, produced by well-known organizations, also serve pesticide registrants and other private sector firms analyzing the U.S. and world pesticide market.

Overview of Contents/Scope of Report

This report profiles the U.S. pesticide industry, on an annual basis, for the years 2006 and 2007, and provides data covering the years 1988-2005 in the historical data tables. Data for 2002-2005 were not reported in previous publications. Data were estimated using several different parameters (e.g., pesticide type, pesticide group, market sector) and appear in tabular format. The scope of the report is largely inclusive of the U.S. pesticide industry and includes data on expenditures, volume, imports, exports, firms, individuals involved in production and use of pesticides, number of pesticides, and number of certified applicators, among other topics. Data on expenditures and sales are reported in nominal terms for the year indicated (i.e., not adjusted or indexed for inflation). The report includes graphical representations of the data where useful. The historical section of the report provides data from 1988 to 2007. Data from 1980 to 1987 are available in previous reports.

Following this Introduction (Section 1), Section 2 of the report summarizes world and U.S. pesticide user expenditures in 2006 and 2007, and Section 3 summarizes world and U.S. pesticide amounts used in 2006 and 2007. Section 4 presents background information on pesticide market sectors. Finally, Section 5 presents historical data summarizing pesticide expenditures and estimates of amounts used from 1988 to 2007.

The writing of the 2008 and 2009 pesticides industry sales and usage report is scheduled to begin once all of the supporting pesticide sales and usage data for 2009 are published and available to EPA. If you have questions regarding this report or need further information, please contact the authors by e-mail (or telephone): Timothy Kiely (703-308-8112), and David Donaldson (703-308-9546).